Facebook’s Notice To Shareholders On Stock Split And Transfer Fees(techcrunch.com)
techcrunch.com
Facebook’s Notice To Shareholders On Stock Split And Transfer Fees
http://techcrunch.com/2010/10/13/facebooks-notice-to-shareholders-on-stock-split-and-transfer-fees/
6 comments
Remember kids, when interviewing at private companies which offer stock rewards, always get firm answers about percentage owned and dilution. Getting 1,000,000 Facebook shares might sound good on an offer letter but without knowing the percentage that could be worth 6$.
Edited to remove comment about par value.
Edited to remove comment about par value.
I don't think that word means what you think it means
"Many common stocks issued today do not have par values; those that do (usually only in jurisdictions where par values are required by law) have extremely low par values (often the smallest unit of currency in circulation), for example a penny par value on a stock issued at USD$25/share."
https://secure.wikimedia.org/wikipedia/en/wiki/Par_value
"Many common stocks issued today do not have par values; those that do (usually only in jurisdictions where par values are required by law) have extremely low par values (often the smallest unit of currency in circulation), for example a penny par value on a stock issued at USD$25/share."
https://secure.wikimedia.org/wikipedia/en/wiki/Par_value
Of course you are right, but the point remains, it is important to understand the percentage of equity that you own/will own and how that will change with future dilution.
par value != market price
On the other hand, perhaps it is close and they want to save their employees the grief of selling now at a much lower price than they anticipate shortly in the future?